Manuals/calci/CAGR
Jump to navigation
Jump to search
CAGR(StartAmount,EndAmount,NumberOfYearsToEnd,NumberOfYearsToStart)
- is the initial amount of investment
- is the end amount of investment
- number of years of investment
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle NumberOfYearsToStart } is the number of years to start
is the initial amount of investment
is the end amount of investment
number of years of investment
Description
A compound annual growth rate (CAGR) measures the rate of return for an investment — such as a mutual fund or bond — over an investment period, such as 5 or 10 years. The CAGR is also called a "smoothed" rate of return because it measures the growth of an investment as if it had grown at a steady rate on an annually compounded basis.
Examples
1. =CAGR(1000,10000,3,0) = 1.1544
Over the course of 3 years/months your investment grew from 1000.0 to 10000.0. Its compound annual growth rate (CAGR) is 115.44 %.
2. =CAGR(1000,5000,10,5) = 0.3797
Over the course of 10 years/months your investment grew from 1000.0 to 5000.0. Its compound annual growth rate (CAGR) calculated from 5th year is 37.97 %.